SENATE BILL NO. 221 "An Act making appropriations, including capital appropriations, supplemental appropriations, and appropriations to capitalize funds; and providing for an effective date." Co-Chair Stedman noted a new committee substitute which includes federally funded projects. All of the general funds or state funded capital projects have been deleted. He related the intent to hear from the departments on each deleted item, project by project. He requested that the departments rank their appropriations. He emphasized the committee's intent to be prudent and put excess funds into savings. Co-Chair Stedman commented that the focus of all presentations is on state funds. He reminded the committee that technology funding was requested by the Governor in FY 08. The intent is to fund the FY 09 capital budget out of FY 09 operating revenues. He spoke of an attempt to not cross fiscal years. 9:18:51 AM DEPARTMENT OF PUBLIC SAFETY  DAN SPENCER, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF PUBLIC SAFETY, turned to the first allocation. Project #41544 APSIN Redesign, Year 3 of 3-Year Plan $2,000,000 Fed Rcpts $5,000,000 Gen Fund Mr. Spencer shared the history and function of the project. This should be the last year of a three-year redesign plan. Project #45321 Active Directory Development $300,000 Gen Fund Mr. Spencer related that this project is the key to the APSIN system and controls access to it. Project #45316 Modernize Supply Inventory, Delivery Order, and Arms Databases $50,000 Gen Fund Mr. Spencer reported that the funds will be used to modernize the supply operation. Project #45336 AST Records Management System $950,000 Gen Fund Mr. Spencer explained that the allocation would take the existing paper-based system and convert it to an electronic system. Project #44329 TraCS Project (Traffic and Criminal Software) $900,000 Gen Fund Mr. Spencer reported that the funding is to automate all form-based items such as citations and reports. Project #45401 Data Exchange with MAJIC Agencies $600,000 Mr. Spencer related that the funding would make all of the collected information available to other agencies such as the Court System, the Department of Law, the Department of Corrections, Division of Motor Vehicles, and the Department of Administration. Project #45328 Fingerprint Card AST Case Image Archive $700,000 Mr. Spencer reported that currently there were 500,000 fingerprint cards stored at the Department of Public Safety. The funding would provide for digitization of those and future cards. 9:25:07 AM Co-Chair Stedman voiced appreciation for the Department's prioritized list. He noted that the Information Technology (IT) projects are intermixed. Senator Dyson referred to a question previously asked about laptops belonging to state troopers. He thought the technology was not in place yet. Mr. Spencer agreed. Senator Huggins inquired about the status of Alaska Land Mobile Radio (ALMR) and where it might be most appropriately listed. Mr. Spenser reported that yesterday's DPS conversation was about hand held radios that are compatible with ALMR. Senator Elton thought that ALMR should be a part of the EIT process. Senator Dyson commented on the ALMR system. He called it a high priority. Senator Huggins agreed with the importance of having a system in place so that it works effectively, is cost effective, and can be sustained over time. 9:30:58 AM DIVISION OF ELECTIONS GAIL FENUMIAI, DIRECTOR, DIVISION OF ELECTIONS, OFFICE OF THE LIEUTENANT GOVERNOR, reported on one allocation, Project #385224, Polling Place Accessibility Improvements under the Federal Help America Vote Act (HAVA). It is a request to expend $100,000 in federal funds received from the U.S. Health and Human Services Department. DEPARTMENT OF LAW 9:32:05 AM BETTY MARTIN, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT OF LAW, explained the Project #45361 request for an appropriation for $200,000 for the CRIMES Database Upgrade. The system provides comprehensive case management, which includes schedule management, generation of case documents, and tracking of case statistics, as well as defendant, victim, and witness information. She provided the history of the system and how the upgrade would be accomplished. 9:34:17 AM DEPARTMENT OF ADMINISTRATION    ERIC SWANSON, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF ADMINISTRATION, noted that the Department had prioritized its comprehensive list. Project #45399 Palmer State Office Building $15,725,000 Gen Fund Mr. Swanson provided the history of the facility and the objective to transform it from a hospital to an office building. Senator Huggins asked how much the request was for negotiating early buy-out of existing contracts. Mr. Swanson replied that it was about $1 million. Project #45546 Facility Deferred Maintenance $7,618,000 ASLC Bonds Mr. Swanson explained that the request was for funding for deferred maintenance in public and non-public building fund projects. He listed the projects and several examples of the kind of work to be done. Co-Chair Stedman asked about the State Museum's roof completion. 9:38:59 AM TANCI MINTZ, STATE LEASE/FACILITIES MANAGER, DIVISION OF GENERAL SERVICES, DEPARTMENT OF ADMINISTRATION, detailed the two phases of the roof completion project. Co-Chair Stedman asked if the Palmer State Office Building was the same as in the number one appropriation request. Ms. Mintz said it was. Mr. Swanson explained that the reason it was listed again was due to a mold problem discovered after the initial request. Ms. Mintz said that was correct. Co-Chair Stedman asked about the expense for the Governor's house and if any other maintenance was needed. He requested more information about possible deferred maintenance needed on the Governor's house. Mr. Swanson agreed to do that. Senator Elton asked how much would be the state's responsibility and how much would fall to non-profit fundraising. Mr. Swanson offered to provide that information. Senator Huggins asked what the Community Building was. Mr. Swanson clarified that it was in Juneau and houses the Department of Commerce, Community and Economic Development. 9:41:23 AM Project #45396 AOGCC Reservoir Depletion Studies Prior to Major Gas $1,500,000 AK Cap Inc Mr. Swanson noted that the Commissioner of AOGCC was available to answer questions. Co-Chair Hoffman requested more information about the next project allocation on the list. Mr. Swanson listed the building deferred maintenance projects. Project #45583 Atwood Building Deferred Maintenance Projects $2,710,000 ASLC Bonds Mr. Swanson explained that the Atwood Project was part of the $7.6 million allocation. He continued to list all of the deferred maintenance projects and their amounts. Senator Elton requested more information about the Court Plaza Building Deferred Maintenance Project. He asked if the roof had already been replaced. Ms. Mintz replied that it had not been replaced; it was the original roof. Mr. Swanson returned to the AOGCC Reservoir Depletion Studies item. 9:45:21 AM CATHY FORESTER, COMMISSIONER, ALASKA OIL AND GAS CONSERVATION COMMISSION (AOGCC), DEPARTMENT OF ADMINISTRATION, explained that the request is for studies of North Slope gas supplies for Prudhoe Bay and for Point Thomson. The results of the studies will help to determine appropriate offtakes. Co-Chair Stedman asked how the study related to the Department of Natural Resource's study. Ms. Forester did not know. Senator Huggins requested more information about the gas offtake in Prudhoe Bay. Ms. Forester said the answer at Prudhoe Bay depends on when the gas pipeline starts up and what has happened in the meantime to mitigate for oil losses and to accelerate oil depletion. 9:48:42 AM Project #45354 Microsoft Directory Project Phase 3 $1,750,000 Info Svc Mr. Swanson discussed the allocation for the Microsoft Directory Project Phase 3 to build out the Microsoft Active Directory, choose locations where deployment of consolidated file and print servers makes sense, move data from all file servers to Windows file servers, and decommission legacy file and print servers. Project #45391 Maintenance Projects for Facilities Outside the Public Building Fund $250,000 Gen Fund Mr. Swanson reported on the Maintenance Projects for Facilities Outside the Public Building Fund annual request, which somewhat overlaps the facilities maintenance project. The funding sources are different. He listed the facilities covered. Co-Chair Stedman questioned the Governor's mansion project cost and the status of the building. Mr. Swanson offered to provide more information. Senator Elton asked about the $250,000 request as it compares to the priority list. Mr. Swanson thought the intent was to do lower cost projects first. Ms. Mintz agreed with Mr. Swanson's answer. 9:52:34 AM Project #45357 Public Building Fund Deferred Maintenance $2,500,000 Public Bldg Mr. Swanson spoke about the request for Public Building Fund Deferred Maintenance, which is an annual request. The funds are collected through rent for the buildings. Project #45348 Web Based Banking Services $325,000 Info Svc Mr. Swanson reported on the allocation for Web Based Banking Services to enhance and improve the functionality, reliability, and security of Enterprise Technology Service's (ETS) Enterprise Banking Web Services. These services allow for customers to use credit cards for payments. Project #45395 Division of Motor Vehicles Alaska License and Vehicle Information Network Replacement $2,500,000 Rcpt Svcs Mr. Swanson explained the allocation for the Division of Motor Vehicles Alaska License and Vehicle Information Network Replacement, which is needed to replace ALVIN because the entire system is out of date. He pointed out that the total cost would be for $10 million, the remainder of which would be requested over the next two years. 9:55:43 AM Project #45400 Retirement and Benefits Combined Retirement System Upgrade $350,000 various fund sources Mr. Swanson reported on the request for Retirement and Benefits Combined Retirement System Upgrade. The existing CRS is outdated. Co-Chair Stedman asked if the system was developed in the 80's. Mr. Swanson thought that was true. Project #45653 Cost of Living Survey $400,000 Gen Fund Mr. Swanson explained that the survey is required by statute every five years. 9:58:08 AM Mr. Swanson reviewed several IT requests. Project #45376 Network Security $2,000,000 Info Svc Mr. Swanson reported that the request was in order to work on a firewall zone or DMZ and Network Admission Component (NAC) to keep the network secure. Project #45346 Asset Management $500,000 Info Svc Mr. Swanson explained that the funding was also appropriated last year. Co-Chair Stedman noted that the three IT projects were integrated on the prioritized list. Mr. Swanson said they were. Project #45352 Facilities Remediation $2,700,000 Info Svc Mr. Swanson reported that the funding is needed for the Juneau and Anchorage Data Centers, as well as for the Atwood Building and in rural areas. The remediation work includes air conditioning, fire suppression, power distribution, and some reconfiguration of physical space. Equipment can be damaged if it is not kept at the right temperature. 10:01:18 AM Senator Thomas asked what percentage of IT projects the funding requests cover. Mr. Swanson did not know. He offered to provide that information. Senator Dyson underscored the importance of the deteriorating data base. He encouraged the importance of keeping up the archives. Senator Elton noted an appropriation for that item in the Department of Education's budget. AT-EASE: 10:04:00 AM RECONVENE: 10:06:33 AM DEPARTMENT OF MILITARY AND VETERANS AFFAIRS    JOHN CRAMER, ACTING DEPUTY COMMISSIONER & DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF MILITARY AND VETERANS AFFAIRS, explained the first allocation for the Alaska Aviation Safety Project. Project #40060 Alaska Aviation Safety Project $500,000 Gen Fund Mr. Cramer explained that the AASP is a multi-faceted, multi-year research project funded by NASA. Its mission is to reduce aircraft related fatalities in Alaska. He shared statistics related to air crashes. He explained how simulators would be used to train pilots. Senator Olson asked where the simulators will be located and who would have access to them. Mr. Cramer replied that the simulators are currently at the Medallion Foundation in Anchorage and access is available to private as well as commercial pilots. Senator Olson inquired if student pilots could use them. Mr. Cramer said they could. He reported on a new, pending technology consisting of home use of the simulation. He said there were currently three simulators. Senator Olson asked if there was any chance of decentralizing the simulators for greater access. Mr. Cramer replied that there has been discussion about that. 10:09:43 AM Senator Elton asked about the relationship between air safety and this program and how it compares to the Capstone program. Mr. Cramer reported that there has been a lot of discussion on that topic. Capstone and Medallion have been working together. This technology is greatly reducing the number of crashes and fatalities in Alaska. Senator Thomas echoed Senator Elton's concerns about coordinating the two programs. Project #45205 Anchorage Armory Roof Replacement $2,000,000 Fed Rcpts $2,000,000 G/G Match Mr. Cramer said that the Anchorage National Guard Armory Roof located on the Fort Richardson Army Base needs replacement because it leaks. Project #42900 Army Guard Facilities Projects $750,000 Fed Rcpts $750,000 G/F Match Mr. Cramer talked about the Army Guard Facilities Projects request. There are 237 Army National Guard buildings with a backlog of maintenance needs. Senator Dyson noted that he and Senator Olson researched VPSO facilities. He shared the positive outcomes. Project #43330 Compliance Cleanup Site Restoration $5,000,000 Fed Rcpts Mr. Swanson discussed the request to deal with cleanup liability estimated to be $33.9 million. The funds would be used to investigate and clean up contaminated armory sites. Project 45174 Improved Communications for Emergency Response (ICER) $3,200,000 Fed Rcpts $800,000 G/F Match Mr. Swanson reported on the Improved Communications for Emergency Response (ICER). The state has been notified by the Congressional delegation of a new interoperable emergency communications grant to states starting in FY 09 and continuing for a minimum of five years. Senator Elton asked that the federal receipts and the general fund match be used to enhance the ALMR communication system. Mr. Swanson replied that ALMR has been looked at and this funding would not be used for it at this time. Senator Elton asked if the systems would be compatible. Mr. Swanson said they would be. Co-Chair Hoffman asked if the program would be focused on areas that are not currently covered by ALMR. Mr. Swanson said that was true. Project #35774 Military Youth Academy Deferred Maintenance, Renewal and Replacement $1,000,000 Gen Fund Mr. Swanson explained the allocation is for the facility at Camp Carroll on Fort Richardson which has 23 buildings. The funds will address inadequacies that include basic life-safety issues, outdated heating systems, toilets, showers, and laundry facilities. Project #42898 National Guard Counterdrug Support System $100,000 Fed Rcpts Mr. Swanson discussed that the purpose of the funding is to deter crime by depriving criminals of profits and proceeds from their illegal activities. 10:16:44 AM Project #42901 State Homeland Security Grant Program $9,500,000 Fed Rcpts Mr. Swanson turned to the State Homeland Security Grant Program allocation. He explained that the federally funded program is awarded annually. He described the programs that are included. It is mandated that 80 percent of the funds go to first responders. Project #45547 Military and Veterans Affairs Deferred Maintenance Projects $6,142,000 ASLC Bonds $1,769,915 Fed Rcpts Mr. Swanson referred to a prioritized list of projects. He explained that Project #45549 for the Alaska Military Youth Academy is for more deferred maintenance projects. He spoke of hazardous material cleanup work that has to be done. 10:20:08 AM Senator Elton asked how this Military Youth Academy Deferred Maintenance Project is related to allocation #35774. Mr. Swanson explained that #45549 would reduce the allocation for #34774. Project #45551 Alcantra Armory (Wasilla) Roof Replacement and Painting, Security Installation, and Equipment $1,120,000 ASLC Bonds $250,000 Fed Rcpts Mr. Swanson explained that the allocation is a deferred maintenance request. He shared that there are security problems. Project 45554 Bethel Readiness Center Stairwell, Fire Escape, Fuel Tank and Building Repair $42,500 ASLC Bonds $42,500 Fed Rcpts Mr. Swanson discussed the deferred maintenance request. 10:23:02 AM Project #45559 Camp Carroll Building Upgrades for Code Compliance $625,000 ASLC Bonds Mr. Swanson talked about the need to upgrade buildings to code. Project #45553 Camp Denali Security System $174,877 ASLC Bonds $268,015 Fed Rcpt Mr. Swanson addressed the need for a security system inside the armory. Project #45560 Fairbanks Readiness Center Roof Replacement $177,500 ASLC Bonds $322,500 Fed Rcpts Mr. Swanson reported on the history of leakage in the facility. 10:24:31 AM Project #45562 Nome Readiness Center Water, Sewer and Energy Efficiencies $1,300,000 ASLC Bonds $400,000 Fed Rcpts Mr. Swanson explained the allocation which would include installation of water and sewer lines and secure heating for the storage building. Project #45565 Kotzebue Readiness Center Roof Replacement, Building Repair, and Fuel Tank Replacement $718,100 ASLC Bonds $486,900 Fed Rcpts Mr. Swanson turned to the last request, which would be used to upgrade an old facility in Kotzebue. Co-Chair Stedman noted the Department's list. He questioned how items related to military youth and Alaska aviation fit into the list. Mr. Cramer said the list he provided was prioritized. 10:26:49 AM Senator Thomas asked about prevention methods regarding the clean up and site restoration project. Mr. Cramer replied, "What we don't know today, may crop up tomorrow." He thought the types of fuel tanks and reservoirs being used would be preventative. AT-EASE: 10:28:29 AM RECONVENE: 10:40:00 AM DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT    SAMUEL THOMAS, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT, addressed the Departments allocations. Project #38946 Community Block Grants $6,030,000 Fed Rcpts $70,000 G/F Match Mr. Thomas itemized the four major components of the grants: Community Services, Food and Nutrition, Community Development, and Emergency Shelter. Project #45296 Licensing Document Imaging and Archival System $1,200,000 Rcpt Svcs Mr. Thomas discussed the threefold purpose of the project: replace hardcopy documents, integrate digitized information, and streamline document access. Project #45298 Investigation System Integration $450,000 Rcpt Svcs Mr. Thomas reported that the project consolidates the departments various investigation systems into one system. 10:46:36 AM Project #45292 Public Information System Security $250,000 Blic & Corp $250,000 Rcpt Svcs Mr. Thomas addressed the request to provide administrative support to all divisions and agencies for secure IT services. Project #43293 Professional Licensing Website Development $400,000 Rcpt Svcs Mr. Thomas explained that the funding would bring 32 professional licensing programs online. Project #38950 Alaska Energy Authority Energy Projects $10,000,000 AK Cap Inc $30,000,000 Fed Rcpts $500,000 I/A Rcpts $500,000 Stat Desig Mr. Thomas described the multiple federally funded energy programs: Bulk Fuel Upgrades, Rural Power Systems Upgrades, Alternative Energy and Energy Efficiency Projects. Project #40056 Organization Grants $200,000 Gen Fund Mr. Thomas discussed the request for a grant to Wrangell to defray the cost of incorporation. Project #45409 Tourism Economic Impact Study $100,000 Gen Fund Mr. Thomas spoke of the request for funds to prepare the study which promotes economic development and job employment. 10:51:58 AM Senator Elton asked why this is not funded by ATIA. CARYL MCCONKIE, TOURISM PROGRAM MANAGER, DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT, explained that ATIA conducts market research and the state conducts tourism visitor studies and economic impact studies. She stressed the importance of the state's involvement in the economic impact studies. Senator Elton asked if the Department provides this information for other industries such as seafood, mining, timber, or transportation. Ms. McConkie replied that the state does some research for the fisheries and mining industries. Senator Elton inquired if existing staff are doing surveys for other industries. Ms. McConkie explained that as resources allowed, that was true. One industry specialist is working for each of the industries. The appropriation would be used for the specialist to manage a contract to obtain the data. SB 221 was set aside. RECESSED: 10:57:06 AM RECONVENED: 1:50:47 PM Co-Chair Hoffman took over as chair of the meeting. SENATE BILL NO. 221 "An Act making appropriations, including capital appropriations, supplemental appropriations, and appropriations to capitalize funds; and providing for an effective date." Co-Chair Stedman asked the departments to provide prioritized lists.  DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT    Project #41789 Kodiak Launch Complex Infrastructure $14,000,000 Fed Rcpts $3,500,000 Gen Fund DALE NASH, CEO, ALASKA AEROSPACE DEVELOPMENT CORPORATIONS, presented an overview of the request. He observed that the state has contributed $16 million and they have received $140 million in capital infrastructure from the federal government. He pointed out that $80 million has been generated from launch activities and there is a five year contract with the missile defense agency, which is taking up most of their capacity. The Kodiak Launch Complex is an established all-weather, state-of-the-industry spaceport with 12 successful launches to date. He observed that the complex is nearing capacity and an additional launch pad is needed. There will be four launches in 2009. State support will facilitate additional federal funds. 3:56:42 PM Co-Chair Stedman clarified that a capital request is not in the CS at the moment. The intent is to determine the reliability of federal funding. The general fund component is $3.4 million and the federal is $14 million. Mr. Nash noted that they had good indications that the federal funds would be forthcoming. 3:57:45 PM GENERAL TOM CASE, PRESIDENT, KODIAK LAUNCH COMPLEX, provided information on the request. He observed that he has worked in the aerospace industry for most of his life. He stressed that space supports national security. One of the key vocations from project base to operational responsive and affordable space launch is critical to the nation. The third launch pad would make Alaska competitive. Aerospace can be a large part of Alaska's economy in the future. He spoke in support of the project and concluded that the commercial and military demand would allow the Kodiak Launch Complex to be a national spaceport. 4:00:58 PM Senator Elton expressed interest in what measures are, or would be taken, as a result of the recent security breach. 4:01:52 PM Project #40242 Manufacturing Extension Program $806,401 Gen Fund SAMUEL THOMAS, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT, reviewed the departments funding requests. He observed that the request would support Alaska's small and medium-sized manufacturers by providing them access to specialists throughout the United States. The local match is one-third. There are 350 locations nationwide. Rural Alaskans would be able to receive assistance. Project #41959 Arctic Winter Games Team Alaska $250,000 Gen Fund Mr. Thomas explained that the request would provide funding for a non-profit, statewide organization to organize and select, uniform, and transport 150 of Alaska's young athletes to the Arctic Winter Games. 4:05:18 PM Project #45654 Alaska Travel Industry Association $3,000,000 Vehicle Rental Tax Mr. Thomas observed that the funds would be appropriated to the Alaska Travel Industry Association and includes $1.5 million of the unexpended and unobligated balance from June 30, 2008. The funds would not be needed if HB 140 legislation is passed to change the match requirement. Senator Elton asked if the request was the entire amount collected under the vehicle tax. Mr. Thomas affirmed. 4:06:33 PM Project #38948 Language Section: NPR-A Impact Grant Program $5,600,000 NPR Fund Mr. Thomas observed that he would provide the list of grantees. 4:08:22 PM Project #32590 Language Section: Electrical Emergencies $250,000 Gen Fund Mr. Thomas observed that the request would address electrical emergencies. Senator Elton referred to the request for Project #45654, Alaska Travel Industry Association (AITA), $3,000,000 Vehicle Rental Tax. He clarified that the tax is on cruise line passengers. The cruise line simply collects the tax. He did not want to provide a rationale for cruise lines to reduce their contributions to ATIA, but only to collect the tax. AT EASE: 4:11:53 PM RECONVENED: 4:12:57 PM Mr. Thomas continued to explain Project #32590 regarding technical support when electricity is lost and the need to have a back-up when this occurs. Co-Chair Stedman requested that Mr. Thomas prioritize the list. 4:16:20 PM DEPARTMENT OF CORRECTIONS  AT EASE: 4:16:52 PM RECONVENED: 4:17:27 PM Co-Chair Stedman noted that there was a handout of a prioritized list. SHARLEEN GRIFFIN, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF CORRECTIONS, introduced the Department's projects. Project #45637 Annual Facilities Maintenance and Repairs $3,000,000 Gen Fund Ms. Griffin pointed out that the list identifies 24 different projects that are priorities within the request. Project #41925 Deferred Maintenance, Renewal, Replacement, Renovation $8,678,000 ASLC Bonds Ms. Griffin described Project #45599 for $800,000 in ASLC Bonds as the roof repair of the Anchorage Correctional Complex. Ms. Griffin listed Project #45600 for $1,044,000 for the Anvil Mountain Correctional Center. Ms. Griffin detailed Project #45601, the Combined Hiland Mountain Correction Center Projects for $800,000 in ASLC Bonds. Ms. Griffin discussed Project #45602, the Fairbanks Correctional Center Projects for $600,000 in ASLC Bonds. Ms. Griffin related details about Project #45603, the Ketchikan Correctional Center Project for $1,000,000 in ASLC Bonds. Ms. Griffin explained Project #45604, the Lemon Creek Correctional Center Project for $350,000 in ASLC Bonds. Ms. Griffin listed Project #45605, the Palmer Correctional Center Projects for $782,000 in ASLC Bonds. 4:23:55 PM Ms. Griffin continued with Project #45609, the Point MacKenzie Correctional Farm Project for $130,000 in ASLC Bonds. Ms. Griffin discussed Project #45606, Spring Creek Correctional Center Project for $1,200,000. Co-Chair Stedman inquired about the Point MacKenzie Project. He wondered if the existing generators are being upgraded for a heavier load. Ms. Griffin explained that the generators don't support the electrical loads currently placed on them. Co-Chair Stedman requested more information. 4:25:17 PM Ms. Griffin explained Project #45607, the Wildwood Correctional Center Project for $85,000 in ASLC Bonds. Ms. Griffin detailed Project #45608, the Yukon-Kuskokwim Correctional Center for $1,887,000 in ASLC Bonds. She noted it was the number one roofing project request. Ms. Griffin explained Project #41515, the Institution Equipment Replacement for $1,000,000 in General Funds. Ms. Griffin explained Project #45208 for Inmate Health Care Medical and Dental Equipment for $133,700 in General Funds. Senator Elton asked if the dental chairs listed would have been covered in last year's capital appropriation for $55,000 that the Governor vetoed. DWAYNE PEEPLES, DEPUTY COMMISSIONER, DEPARTMENT OF CORRECTIONS, explained that the dental chairs are mid-range priced. One was scheduled for Hiland and one for Wildwood correctional facilities and were different projects than last year's. Ms. Griffin discussed Project #41516 for Community Jail Repairs, Renovations, and Equipment for $200,000 in General Funds. Ms. Griffin concluded with Project #45247 for Information Technology Systems Implementation and Replacement for $1,750,000 in General Funds. AT EASE: 4:30:06 PM RECONVENED: 4:30:23 PM Mr. Peeples explained that the request was to replace servers and photo ID systems, purchase a medical record system, and upgrade and renew the OTIS information system. Co-Chair Stedman noted that item was priority three on the list. 4:32:42 PM Senator Elton pointed out that the language in the justification makes it sound like the $250,000 component with the base code would be a sole-sourced contract by a software services company. He wondered if that was allowable. Mr. Peeples clarified that the OTIS system is owned by a consortium of states and it would involve a government to government relationship contract. Senator Elton asked if that was allowed under the procurement code. Mr. Peeples said it was acceptable with approval by the Department of Administration. AT EASE: 4:34:53 PM RECONVENED: 4:36:28 PM COURT SYSTEM  CHRIS CHRISTENSEN, DEPUTY ADMINISTRATIVE DIRECTOR, ALASKA COURT SYSTEM, explained that the Court System has presented a list of projects directly to the legislature and the Office of Budget and Management. The Administration did insert several projects from the list into the capital budget. He referred to a deferred maintenance request for $3,276,000 that was placed in the Governor's bill, as well as $5 million worth of other prioritized projects. The current CS does not include these projects. He proceeded to identify the original nine items in the list as well as those that exceeded the $5 million cap. Co-Chair Stedman noted that they were prioritized. Mr. Christenson explained which list he was working off of. AT EASE: 4:38:19 PM RECONVENED: 4:39:20 PM Mr. Christensen referenced the list entitled Capital Projects Six Year Plan Form CP2. Anchorage Campus Project Renovation $23,507,600 Gen Fund Mr. Christensen explained the history of the Anchorage court campus project and the need for the renovations. He pointed out that it would be more efficient to complete all of the phases at this time, rather than over a period of years. CourtView Enhancements $1,708,100 Gen Fund Mr. Christensen pointed out that this is the court systems only IT project and is the second priority. It is a three- year program to enhance the court's case management system. Co-Chair Stedman asked if this item was the number two priority on the list. Mr. Christensen said it was. Mr. Christensen provided several examples as to why the system was needed. It would allow information to be accessible on line for enforcement agencies. 4:43:09 PM Co-Chair Stedman recalled conversations in the past which highlighted the lack of a case management system as a concern. He agreed that it was important to have such a system in place. Mr. Christensen highlighted the advantages of providing CourtView for external agencies and the public. He referred to the "Magic Committee" a group made up of 20 law enforcement agencies. Co-Chair Stedman voiced concern that there is no cross-referencing. 4:45:29 PM Court Security Projects $1,586,900 Gen Fund Mr. Christensen described the request for a variety of security projects around the state. A priority was for $150,000 to fund an integrated security system in the Ketchikan Court House. Another piece of the request was for $350,000 for the Palmer Court House. Co-Chair Stedman noted that the request for $150,000 was reduced from the original submission. Mr. Christensen reported that there was an additional request for $1,350,000 of which $350,000 would fund the Department of Public Safety's space in the Palmer Court House. 4:49:53 PM Building Equipment and Systems Replacement $591,000 Co-Chair Stedman defined the process the committee would use to make its decisions. Mr. Christensen reported that the building equipment and systems replacement involves statewide replacement of equipment and system components that have exceeded their useful life expectancy. Deferred Maintenance Projects $3,276,000 Gen Fund Mr. Christensen reported that included in these projects is the Ketchikan Court and Office Building, the Anchorage Boney Courthouse, Delta Courthouse, Ft. Yukon Court, Dimond Court. Mr. Christensen moved on to items that did not make it into the Governor's budget. Senator Elton referred to the deferred maintenance of the Dimond Court and Office Building. He thought the Court System was a part of the public building pool fund source. Mr. Christensen said that was true. He offered to find out more about it and get back to the committee. He pointed out that most of the buildings mentioned are owned by the Executive Branch. 4:52:41 PM Senator Elton asked if the Court System's deferred maintenance criteria is different than the Governor's. Mr. Christensen said the same definition is used by all. 4:53:57 PM Statewide Remodeling Projects $2,155,000 Mr. Christensen reported that these were renovation projects to increase staff efficiency, improve access for the public, and accommodate new technology. Projects included in the request would be to remodel the judicial benches and in-court stations, and complete the remodel of the fifth floor of the Fairbanks Courthouse. Provide and Replace Worn Furnishings and Specialized Finishes in Court Public Use Spaces $650,000 Gen Fund Mr. Christensen noted that all of the money is for public courthouses. 4:56:36 PM Statewide Building Code and Energy Upgrade for Court Buildings $850,000 Gen Fund Mr. Christensen described the upgrades planned for statewide building codes and energy efficiencies. Vehicles and Forklift Replacement $90,000 Mr. Christensen explained the use of funds to replace two court automobiles and a warehouse forklift. AT EASE: 4:58:31 PM RECONVENED: 4:59:44 PM DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT  GUY BELL, ASSISTANT COMMISSIONER AND DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT, said he had a presentation that summarized the Department's priorities and a proposed net zero reallocation of funding. The revisions revolve around the Alaska Vocational Technical Center (AVTEC). Recently, revised cost estimates were received for the priority projects previously submitted in the capital budget. The funding has been reallocated because of those revised estimates and one of the projects has been dropped. 5:01:48 PM Project #43045 AVTEC Culinary Building Replacement and Instructional Equipment $7,119,000 Mr. Bell said the project would demolish the old building and build a new one adjacent to the student cafeteria. He requested that a deferred maintenance project, the remodel of the cafeteria, be included as part of this project. He referred to a schematic which showed the location of the buildings. 5:04:42 PM Project #45285 AVTEC Maritime Safety Training Facility $2,000,000 Gen Funds $1,350,000 G/F Match Mr. Bell explained that it would fund the building of a basic training facility for mariners. 5:06:05 PM Project #45246 Alaska Labor Exchange System Enhancement and Gas Pipeline Skills Inventory $600,000 Mr. Bell noted that this is an IT project that will upgrade the Alaska Labor Exchange System. Project #49453 AVTEC Deferred Maintenance $1,486,000 ASLC Bonds $3,900,000 Gen Fund Mr. Bell reported that this is a revised project and was originally for remodeling the cafeteria and the 35-year old dormitory. The cafeteria remodel has now been proposed to be included with the building of a new culinary center. It has also been determined that it would cost less to demolish the dormitory and rebuild it than to remodel it. Mr. Bell withdrew the request to remodel the dormitory building and will readdress the project in FY 2010. Mr. Bell proposed to take the remainder of the deferred maintenance budget and reallocate the funds to other high priority deferred maintenance projects at AVTEC. Co-Chair Stedman requested a re-prioritized list. 5:11:25 PM Project #45287 AVTEC Student Database System $400,000 Gen Fund Mr. Bell explained the request for funds to replace the student database system. It would allow for a web-based system and better student record keeping. Project #45289 Business Services Management Information System $3,700,000 Gen Fund Mr. Bell reported that the request is an IT project to replace a management information system. The current system is over 10 years old. There would a $150,000 savings due to this project. 5:13:20 PM Project #45221 Labor Standards Certified Payroll System Enhancements $160,700 Gen Fund Mr. Bell explained that the request is for funds in order for the Division to have an enhancement to the existing on- line system that would track public construction projects. It would allow for electronic fee payment and the filing of Notices of Work and Completion. Project #45284 Vocational Rehabilitation Accounting Interface with AKSAS #250,000 Gen Fund Mr. Bell reported that the allocation would provide the ability to transfer client related payments from the Division's system to the state accounting system. 5:14:55 PM Project #45288 AVTEC Student Records Archival System $100,000 Gen Fund Mr. Bell said that the funds would be used to acquire electronic imaging equipment and software to store student records on an electronic media source. Project #AMD41944 Alaska Works Partnership Fairbanks Pipeline Training $3,000,000 Gen Fund $3,000,000 Fed Rcpts Mr. Bell explained that the request was from the Governor's amended budget. The purpose is to complete funding for Fairbanks pipeline training center. He showed pictures of the training center and spoke of prior appropriations. He stressed that the project is a partnership. 5:17:04 PM Co-Chair Hoffman noted that there are several labor construction projects all around rural Alaska. He wondered why there was not any assistance from the Department to complete them. He pointed out the high unemployment rates found in rural areas. 5:17:38 PM Mr. Bell reported that the Department does provide assistance to rural Alaska. He pointed to AVTEC as an example of a program that draws students from rural Alaska. Co-Chair Hoffman thought that there should be jobs and projects provided in rural areas where the workers live. Mr. Bell said the Department tries to work closely with regional training centers around Alaska. He offered to provide documentation. Co-Chair Hoffman emphasized that the topic under discussion was the capital budget. He questioned why the state was not seeking completion of capital projects in rural Alaska. Mr. Bell offered to provide an answer for the committee. SB 221 was heard and HELD in Committee for further consideration.